After HYBE's position of being the biggest shareholder in SM Entertainment, K-pop enthusiasts especially "Pink Bloods" (SM Entertainment stans) can't help but express curiosity if what will happen to its artists.

On February 10, HYBE, home to BTS, SEVENTEEN, NewJeans, LE SSERAFIM and more acquired 14.8% shares in SM Entertainment, making Bang Si Hyuk a major shareholder in the leading K-pop company.

Since then, K-pop enthusiasts didn't only express curiosity if what will happen to the HYBE vs Kakao vs SM case, but most were interested in how will this affect the artists and releases under SM Entertainment once HYBE exercised its management rights.

Will SM Entertainment 'Disappear' Once HYBE Becomes Largest Shareholder?

According to the Korean media outlet The Economist, SM Entertainment is expected to be incorporated and operated as an HYBE affiliate company which means that the current artists under SM will remain the same.

In the past, HYBE has expanded its position by acquiring entertainment companies such as Source Music in 2019, Pledis Entertainment in 2020 and created the sub-label ADOR led by Min Hee Jin in 2021.

Why Did Lee Soo Man Sell Shares To HYBE?

After losing control over SM boards, Lee Soo Man decided to sell his shares to HYBE at a premium, after forming a consensus.

HYBE currently houses popular K-pop stars such as SEVENTEEN, TXT, ENHYPEN, NewJeans, and LE SSERAFIM, led by BTS.

SM is also known for its competitive IPs (intellectual property rights) such as TVXQ, Super Junior, SHINee, EXO, NCT, and aespa, so its combination with HYBE is expected to have a big impact on the K-pop market.

Regarding the deal, HYBE told SBS:

"The acquisition of SM Entertainment is to unite the global capabilities of the two companies to become a game changer in the global popular music market.

We have confirmed Lee Soo Man's commitment to improving SM's governance structure. HYBE will play an active role in SM's governance improvement process as it has already led industry advancements such as multi-label strategy operation and fandom platform development."

What Will Happen to SM Entertainment's 'KWANGYA'?

Bang Si Hyuk also expressed his respect to Lee Soo Man for his development of K-pop into an industry.

"I am willing to realize the global vision that Lee Soo Man planned including the implementation of metaverse (KWANGYA), multi-label system establishment and the campaign to save the Earth."

Will Weverse Integrate With DearU Bubble?

Meanwhile, the possibility of the integration of HYBE's Weverse and SM's dear U bubble fandom-communicating platforms is high.

Once combined, HYBE x SM will house more than 90% of domestic K-pop artists through the integrated platform and it will possibly rise as the world's No. 1 fandom platform.

Can Lee Soo Man Still Be Producer For SM Artists Following Acquisition?

Despite teaming up, it is not true that Lee Soo Man will return to SM as its chief producer or have the management rights.

For the next three years, he won't be able to work with SM artists or have any production work in Korea, excluding works overseas.

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Written by Eunice Dawson.